How to Divide Pension Income in a Divorce in Illinois
If you've come to an agreement with your soon-to-be ex-spouse on dividing pension assets, you can facilitate the split by having an Illinois family court issue a Qualified Domestic Relations Order (QDRO). In short, QDROs create an alternate payee to whom half the pension funds go, if indeed the divorce settlement stipulates the funds are to be divided equally. If the retirement funds were accrued via an Illinois government/public service job, a Qualified Illinois Domestic Relations Order (QIDRO) should be issued.
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Instructions
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Locate the appropriate family court. An Ilinois family court in the county where you reside will have jurisdiction. Speak to a family law judge about your desire to divide your marital pension funds.
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Ask the family law judge to issue a QDRO or a QIDRO. Only a judge can do this. If you and your spouse have independently come to a decision to divide the funds equally, tell the judge this information. The judge will issue a QDRO stating the percentage split to which you've both agreed.
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Take the QDRO to the employer's payroll department. The primary payee will need to present the order to whomever is in charge of pension plans at his place of employment. Then, the QDRO is submitted to the appropriate authority. If the alternate payee has a pension plan of her own, the funds can be directly deposited into her retirement account, or a new retirement account can be created.
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Tips & Warnings
If you're the alternate payee, and you want your share of the pension funds deposited into your own 401(k) or other retirement fund, be sure to inform the judge and your employer's payroll department.
If you're unsure as to how to proceed, speak to a family law attorney who's licensed to practice in Illinois. Divorce and family law is often complex, so consult an attorney if you need assistance obtaining a QDRO.
